AFM 101 Chapter 6 Notes - AFM 101 Chapter 6 Players in the...

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AFM 101 Chapter 6 Players in the Accounting Communication Process Regulators are people or organizations that regulate or create the rules and accounting standards. The regulators are a group of 13 organizations under the title of CSA: Canadian Securities Administrators - There are organizations that deal with provincial and territorial issues - They work closely with the AcSB (accounting standards board) which is the organization that establishes the standards for accounting - Another organization is the AASB, which is the Auditing and Assurance Standard board - Another organization that deals with regulations of the stock exchange is the CRA or Canadian Revenue Agency. - AASB provides auditors with auditing standards - AcSB provides accounting standards to management - Stock exchange regulators provide corporate governance standards to directors Managers (CEO, CFO, and accounting staff ) - CEO (chief executive officer) is the highest officer in the company - The CFO (chief financial officer) is the highest officer associated with the financial and accounting side of the business - The two officers must sign off reports: o stating that it does not contain and untrue material items, or omitted material items o There is no significant weaknesses in the internal control system o They have disclosed the information to auditors and had it audited Board of Directors (audit committee) - These are elected by shareholders in order to maintain the integrity and responsibility of the financial reports and financial statement preparation - The audit committee of the board (which has to be independent of any managers of the company) is responsible for hiring the company’s independent auditor Auditors - Public companies need an independent audit - They often have to sign an unqualified (clean) audit opinion which signifies that the statements are fair to their presentation in material aspects with conformity with Canadian auditing standards -
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  • Fall '08
  • KENNEDY
  • Stock exchange

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